When there is an acquisition or disposal of subsidiaries and business units:
A)the associated cash flows are classified as non-operating
B)the associated cash flows are allocated between operating, financing and investing activities
C)the resulting cash flows are classified as relating to investing activities
D)the associated cash flows are presented separately from those cash flows relating to investing, financing and operating activities.

Question

Quizplus · Accepted Answer

The resulting cash flows from the acquisition or disposal of subsidiaries and business units are classified as relating to investing activities, as they are considered investments in or divestments of business operations.

When There Is an Acquisition or Disposal of Subsidiaries and Business